Saturday, August 01, 2009

It's a New Bull Market, Here And Around the World; Free Market Capitalism Still Best Path to Prosperity

Let’s call this what it is: A new bull market in stocks has emerged from the ashes of the financial meltdown and the deep recession that followed. And it’s signaling the onset of economic recovery. Free-market capitalism is more durable, resilient, and self-correcting than its detractors would have us believe.

But this is much more than a summer rally. It’s a new bull market heralding a new economic recovery. Free-market capitalism is trying hard to push back against Obama’s central-planning. The bears will lose this round.

MP: And the "new bull market heralding a new economic recovery" isn't only happening in the U.S., we've got a major worldwide bull market and economic recovery taking place. For example, see the chart above of the MSCI World Stock Market Index, which closed yesterday at 1,044.75 points, and is now approaching a 10-month high, and is up more than 50% from the March lows.

And look at the chart below of the MSCI Emerging Markets Index which illustrates the roaring bull market in economies around the world like India (+66.2% YTD), China (+47.6%), Russia (+55%), Brazil (+68%), Turkey (+59%), Taiwan (+47%), etc. As a group, the emerging markets are 78% above the March lows, and the MSCI Emerging Markets Index is at the highest level in more than 10 months, and up by more than 47% year-to-date.

Welcome to the World Bull Market and Global Economic Recovery of 2009!

15 Comments:

Bull? Bull. Zoom out a few clicks. It's a long, long way back to 14,000.

This is a sucker's rally. When production lags and employment flounders in the latter half of this year it will plunge again. Most of these stocks, especially the financials, are way over-valued. Government debt is artifically covering up a decimated economy.

Yes, Americans all agree that capitalism and a free market can generate enormous wealth. Our profound recession debacle and its causes remind us of the need for reasonable constraints and regulations to protect society at large from reckless and malevolent exploitation that can sabotage a free market system and bring it to its knees.

"Our profound recession debacle and its causes remind us of the need for reasonable constraints and regulations to protect society at large from reckless and malevolent exploitation that can sabotage a free market system and bring it to its knees"...

Henry Hazlitt wrote "The effect of keeping interest rates low, in fact, is eventually the same as that of keeping any other price below the natural market. It increases demand and reduces supply...It tends, to encourage highly speculative ventures...the articificial reduction of rates discourages normal thrift, savings and investment...It can create the illusion of more capital just as the addition of water can create the illusion of more milk."

Are we making the same mistake again? Borrowing from tomorrow to pay for yesterday?

I'm talking about the offshoring lobby and those whom have gotten their hooks into our government.

I see your Obama, and raise you one Elaine Chao, one Richard Berman, every member of Berman's lobbying groups, one Rubin, two Clintons, every card carrying member of the Chinese Communist Party, one NASSCOM lobby group, every pro-offshoring group in India, and every single anti-citizen law firm.

That is a mighty diverse set of actors across various parts of the political spectrum. You can claim legitimacy to the practice when they are held to account for their "US-citizen is second class" nature.